# Table 5b: Investment Channel — Response to Monetary Shocks (Local Projections)

| Variable | h=1 Full | h=1 OECD | h=2 Full | h=2 OECD | h=3 Full | h=3 OECD | h=4 Full | h=4 OECD | h=5 Full | h=5 OECD |
|---|---|---|---|---|---|---|---|---|---|---|
| delta_policy_rate | 0.066** (0.028) | 0.154*** (0.038) | -0.038 (0.034) | -0.006 (0.050) | -0.015 (0.035) | 0.007 (0.056) | 0.002 (0.035) | 0.044 (0.060) | 0.015 (0.035) | 0.069 (0.061) |
| Z_1 | -4.003 (4.140) | -7.401 (6.858) | -4.499 (8.702) | -6.932 (16.790) | -7.275 (12.257) | -8.307 (24.733) | -10.126 (14.545) | -25.146 (29.475) | -6.727 (16.577) | -22.272 (33.375) |
| Z_2 | 0.444 (0.615) | 0.854 (0.927) | 0.430 (1.291) | 0.691 (2.265) | 0.838 (1.820) | 0.879 (3.342) | 1.177 (2.163) | 2.964 (3.989) | 0.515 (2.470) | 2.458 (4.527) |
| Z_3 | -0.013 (0.025) | -0.027 (0.035) | -0.011 (0.052) | -0.019 (0.085) | -0.027 (0.073) | -0.026 (0.126) | -0.038 (0.087) | -0.098 (0.150) | -0.007 (0.100) | -0.075 (0.171) |
| Z_1_x_delta_rate | 0.020 (0.019) | 0.094*** (0.025) | -0.027 (0.023) | 0.007 (0.033) | -0.020 (0.023) | -0.004 (0.037) | -0.005 (0.023) | 0.029 (0.039) | -0.000 (0.023) | 0.049 (0.039) |
| rgdp_growth | 0.180*** (0.022) | 0.334*** (0.029) | 0.122*** (0.029) | 0.315*** (0.040) | 0.027 (0.028) | 0.088** (0.042) | 0.095*** (0.029) | 0.204*** (0.042) | 0.098*** (0.033) | 0.333*** (0.052) |
| inflation | -0.002 (0.009) | -0.006 (0.013) | -0.028* (0.015) | -0.097*** (0.025) | -0.043** (0.017) | -0.105*** (0.030) | -0.022 (0.019) | -0.068 (0.045) | -0.020 (0.019) | -0.022 (0.047) |
| fiscal_bal_gdp | 0.023 (0.020) | -0.001 (0.017) | 0.071** (0.034) | -0.012 (0.035) | 0.089** (0.037) | -0.067 (0.043) | 0.055 (0.038) | -0.166*** (0.047) | 0.040 (0.040) | -0.226*** (0.051) |
| kaopen | 0.046 (0.065) | 0.056 (0.087) | 0.014 (0.133) | -0.051 (0.194) | -0.014 (0.180) | -0.114 (0.258) | -0.069 (0.206) | -0.042 (0.287) | -0.294 (0.229) | 0.046 (0.305) |
| nfa_gdp_lag | 0.032 (0.080) | 0.044 (0.108) | 0.041 (0.156) | -0.079 (0.242) | 0.026 (0.196) | -0.162 (0.310) | -0.032 (0.216) | -0.421 (0.330) | -0.161 (0.234) | -0.431 (0.344) |
|---|---|---|---|---|---|---|---|---|---|---|
| R² | 0.068 | 0.312 | 0.034 | 0.156 | 0.022 | 0.012 | 0.023 | -0.001 | 0.027 | -0.004 |
| N obs | 1,418 | 486 | 1,412 | 486 | 1,355 | 468 | 1,299 | 450 | 1,242 | 432 |
| N countries | 72 | 19 | 72 | 19 | 71 | 19 | 71 | 19 | 70 | 19 |